FINANCE MINISTRY INTRODUCES BILL TO WITHDRAW RETROSPECTIVE AMENDMENTS TO INCOME TAX ACT - A COMPROMISE FOR VODAFONE, CAIRN JUDGMENTS The Central government has introduced Taxation Laws (Amendment) Bill , 2021 by which it has proposed to do away with the retrospective application of 2012 amendments to the Income Tax Act which had made gains arising from the transfer of assets located in India through the transfer of the shares of a foreign company, taxable. This move will impact many companies including Vodafone and Cairn Energy who had to pay tax based on the retrospective law. The 2021 Bill now states that said clarificatory amendments made in 2012 invited criticism from stakeholders mainly with respect to retrospective effect given to the amendments. Consequently, through the new Bill, it has now been decided that no tax demand will be raised on indirect transfer of Indian assets made before May 28, 2012 when the amendments came into effect. Reddy and Reddy law firm has expertise in litigation matters. They have a team of experienced professional ready to assist you in all your disputes.